Part 4

1. Part 4 ALIGNING SERVICE DESIGN AND STANDARDS

2. Your Work • Glacier Bear Lodge • 1 Pager Upward Communication • Listening Instrument • Research Proposal [ If they are not in VC by Sunday – you will get zero score for all of these]

3. Provider Gap 2

4. Key Factors Leading to Provider Gap 2

5. Factors Necessary for Appropriate Service Standards Types of Customer-Defined Service Standards Development of Customer-Defined Service Standards Customer-Defined ServiceStandards

6. FedEx Service Quality Indicator (SQI)

7. Service Standards Standards are based on the most important customer expectations and reflect the customer’s view of these expectations. Customer-Defined Standards SOURCES Customer Expectations Customer Process Blueprint Customer Experience Observations SOURCES Productivity Implications Cost Implications Company Process Blueprint Company View of Quality Company-Defined Standards

8. Customer Service Report Card forPuget Sound Energy

9. Counting… “Not everything that counts can be counted...and not everything that can be counted, counts.” Albert Einstein

10. HARD STANDARDS AND MEASURES Things that can be counted, timed, or observed through audits (time, numbers of events) SOFT STANDARDS AND MEASURES Opinion-based measures that cannot be observed and must be collected by talking to customers (perceptions, beliefs) Standards…

11. Examples of Hard Customer-Defined Standards

12. Examples of Soft Customer-Defined Standards

13. Exercise for Creating Customer-Defined Service Standards • Form a group of four people • Use your school’s undergraduate or graduate program, or an approved alternative • Complete the customer-driven service standards importance chart • Establish standards for the most important and lowest-performed behaviors and actions • Be prepared to present your findings to the class

14. Customer-Driven Standards and Measurements Exercise Service Encounter Customer Requirements Measurements Service Quality

15. What Customers Expect: Getting to Actionable Steps

16. Process for Setting Customer-Defined Standards

17. Importance/Performance Matrix

18. Linkage between Soft Measures and Hard Measures for Speed of Complaint Handling

19. Example of Customer-Defined Service Standards at Circuit City Initial Sales Contact with Circuit City in Store • act in a professional and courteous manner • ask customer what he or she is looking for • offer to be available when needed if customer not ready • ask customer several questions about specific needs or wants • educate the customer about products in category • explain the differences between products (such as TVs) that customer is considering • be honest about options and price Adapted from: John R. DiJulius III (2005), Secret Service, Hidden Systems That Deliver Unforgettable Customer Service.

20. Example of Customer-Defined Service Standards at Circuit City Checkout at Circuit City in Store • act in a professional and courteous manner • probe customer to assure that product meets needs and reduce any anxiety and uncertainty that the customer might feel • explain the warranty service that accompanies the product • using what is known about the customer, explain the Circuit City customer service agreements that extend the warranty • explain the differences between CSA options, being sure to relate them to what the customer needs • encourage purchase, and fully explain how to implement CSA Adapted from: John R. DiJulius III (2005), Secret Service, Hidden Systems That Deliver Unforgettable Customer Service.

21. Example of Customer-Defined Service Standards at Circuit City Post-sale Follow Up • telephone customer within next 7 days to ask how TV is operating • ask if client is ready to schedule first service • if client is ready, establish date for first service • send out postcard one week in advance of first service call to remind customer and explain what needs to be done Adapted from: John R. DiJulius III (2005), Secret Service, Hidden Systems That Deliver Unforgettable Customer Service.

22. Example of Customer-Defined Service Standards at Circuit City Annual Follow Up • send customers reminder cards that they have either used the service or are due for a service call • two weeks after mailing card, call customers who have used service and assure that they are satisfied both with product and service • call each customer who has not used the service and schedule a “maintenance check-up” where service provider goes to home and checks and tunes television Adapted from: John R. DiJulius III (2005), Secret Service, Hidden Systems That Deliver Unforgettable Customer Service.

23. Soft Standards at Toyota in Japan • Standards for salespeople patterned after samurai behaviors: • assume the samurai warrior’s “waiting position” by leaning five to ten degrees forward when a customer is looking at a car • stand with left hand over right, fingers together and thumbs interlocked, as the samurais did to show they were not about to draw their swords • display the “Lexus Face,” a closed-mouth smile intended to put customers at ease Samurai warrior “waiting position”

24. More Soft Standards at Toyota in Japan • Standards for salespeople patterned after samurai behaviors: • when serving coffee or tea, kneel on the floor with both feet together and both knees on the ground • bow more deeply to a customer who has purchased a car than a casual window shopper  • stand about two arms’ lengths from customers when they are looking at a car and come in closer when closing a deal • point with all five fingers to a car door’s handle, right hand followed by left, then gracefully open the door with both hands 

25. Hard and Soft Service Standards at Ford • Appointment available within one day of customer’s requested service day • Write-up begins within four minutes • Service needs are courteously identified, accurately recorded on repair order and verified with customer • Service status provided within one minute of inquiry • Vehicle serviced right on first visit • Vehicle ready at agreed-upon time • Thorough explanation given of work done, coverage and charges

26. Seven Service Culture Standards Core Worldwide Service Operating Standards Smile Eye Recognition Voice Informed Clean Everyone Reservations Hotel Arrival Messages and Paging Guest Room Evening Service Breakfast Room Standards at Four Seasons Exceptions are permitted if they make local sense

27. Ritz-Carlton’s SQI Index

28. Reflection – customer driven servie standards!

29. Challenges of Service Innovation and Design New Service Development Processes Types of Service Innovations Stages in Service Innovation and Development Service Blueprinting High-Performance Service Innovations Service Innovation and Design

30. Risks of Relying on Words Alone to Describe Services • Oversimplification • Incompleteness • Subjectivity • Biased Interpretation

31. Describing the Complexity of a Service Offering:

32. Types of Service Innovations • major or radical innovations • start-up businesses • new services for the currently served market • service line extensions • service improvements • style changes

33. New Service Development Process

34. New Service Strategy Matrix for Identifying Growth Opportunities

35. Service Blueprinting • A tool for simultaneously depicting the service process, the points of customer contact, and the evidence of service from the customer’s point of view.

36. Service Blueprint Components Customer Actions line of interaction Visible Contact Employee Actions line of visibility Invisible Contact Employee Actions line of internal interaction Support Processes

37. Service Blueprint Components

38. Blueprint for Express Mail Delivery Service

39. Blueprint for Overnight Hotel Stay Service

40. Building a Service Blueprint

41. Application of Service Blueprints • New Service Development • concept development • market testing • Supporting a “Zero Defects” Culture • managing reliability • identifying empowerment issues • Service Recovery Strategies • identifying service problems • conducting root cause analysis • modifying processes

42. Service Marketers creating realistic customer expectations: service system design promotion Operations Management rendering the service as promised: managing fail points training systems quality control Human Resources Management empowering the human element: job descriptions selection criteria appraisal systems System Technology providing necessary tools: system specifications personal preference databases Blueprints Can Be Used By:

43. Benefits of Service Blueprinting • Provides a platform for innovation. • Recognizes roles and interdependencies among functions, people, and organizations. • Facilitates both strategic and tactical innovations. • Transfers and stores innovation and service knowledge. • Designs moments of truth from the customer’s point of view. • Suggests critical points for measurement and feedback in the service process. • Clarifies competitive positioning. • Provides understanding of the ideal customer experience.

44. Common Issues in Blueprinting • Clearly defining the process to be blueprinted • Clearly defining the customer or customer segment that is the focus of the blueprint • Who should “draw” the blueprint? • Should the actual or desired service process be blueprinted? • Should exceptions/recovery processes be incorporated? • What is the appropriate level of detail? • Symbology • Whether to include time on the blueprint

45. Parking Exterior Building Waiting AreaOutdoor Seating Interior Design Hostess Stand Appearance of Staff Cleanliness of Table Silverware Napkins Sauces Centerpiece Drink Station Appearance of Bar and Bartenders Plates Glasses Presentation Food Drinks PHYSICAL EVIDENCE Menu Menu Approach Hostess Stand Wait/Order Drinks at Bar Order Drinks/Appetizers Specify “Spiciness” of Sauce Receive Drinks/ Appetizers Arrive at Restaurant Be Seated at Table Order Entree Consume Drinks CUSTOMER Next Slide Prepare Sauce at Table Deliver Drinks/ Appetizers Greet and Take Drink Order Take Drink/Appetizer Order Greet and Give Buzzer Deliver Drinks Escort to Table (Visible) Prepare Drinks CONTACT PERSON Process Seating Requests Check Accuracy of Order Input Orderat Bar/Kitchen “Buzz” Customer (Invisible) SUPPORT PROCESS Prepare Drinks/ Appetizers Computerized Seating System Receive Order

46. New Silverware Plates Food Presentation Portfolio with Check Enclosed Fortune Cookies PHYSICAL EVIDENCE Plates Food Presentation Doggie Bags Menu Menu Consume Refills, Extra Sauce Ask for Doggie Bag Eat Dessert Order Dessert Ask for Bill Order Entree Receive Entree FinishMeal Pay Bill Eat Food CUSTOMER Take Entree Order Pick-up Empty Plates/Clean off Table Show Dessert Menu Offer Refills, Extra Sauce Bring Boxes to Customer Deliver Drinks, Extra Sauce Deliver Order Deliver Dessert Deliver Bill and Fortune Cookies (Visible) Pack up Food Take Order CONTACT PERSON Enter Order into Computer Refill Drinks, Extra Sauce Enter Dessert Order Into Computer Total Bill at Computer Take Plates to Kitchen (Invisible) Receive Order/ Prepare Dessert SUPPORT PROCESS Print Bill WashDishes Receive Food Order Prepare Food

47. Tangible Cues or Indicators of Quality • Exterior and Interior Design • Presentation of Food/Drinks • Appearance of Staff • Cleanliness of Tables, Utensils • Cleanliness of Restrooms • Location of Restaurant • Appearance of Surrounding Customers

48. Possibility of Standardization • Hostess Greeting • Pre-Prepared Sauces (Mild, Medium and Hot) • Time Standards • Food and Drink Quality Standards • Bill Standards

49. Potential Fail Points and Fixability • Bar • train to make drinks; create ample seating space for wait area overflow • Food • revise food presentation; create quality control checks to ensure order is correct before delivering to customer • Staff • training; set number of times to check-in on customers; behavioral and attitude guidelines; dress code • Billing • standards for when to bring bill, how to deliver, when to pick-up, how quickly to process transaction; ensure one fortune cookie per customer • Cleanliness • standards for amount of time it takes to clear and clean tables; regular restroom checks

50. Physical Evidence Types of Servicescapes Strategic Roles of the Servicescape Framework for Understanding Servicescape Effects on Behavior Guidelines for Physical Evidence Strategy Physical Evidence and the Servicescape